Specialty insurance managing general agent Nexus Group said it has acquired the assets of Personal Accident Treaty Reinsurance MGA operated by ZON Re, a U.S. based treaty reinsurance managing underwriter and Lloyd’s coverholder.
The New Jersey-based ZON Re PA Treaty Reinsurance MGA will now trade as Nexus Re and will continue to be led by ZON Re’s senior management team of W. Brian Harrigan, Kieron Farrelly, Chris Holland and Vern Ismen. All four become shareholders in Nexus.
This acquisition is Nexus’ first in the U.S. and adds treaty reinsurance to its growing portfolio.
The company said the treaty reinsurance MGA alone will add earnings in excess of $3 million to the Nexus Group in 2017.
This is the third acquisition for Nexus within the past month. Earlier this month it purchased Equinox Global and in June it picked up Vectura Underwriting.
Combined, these three acquisitions will add GWP of £ 40 million (U.S. $52 million) and EBITDA of £4 million (U.S. $5.2 million) to the Nexus Group in 2017, as well as three additional countries, 10 new branches and a number of new product lines.
Colin Thompson, founder and executive chairman of Nexus, said “there will be more acquisitions to follow.”
While ZON Re has sold its PA Treaty Reinsurance MGA to Nexus, ZON Re said it will continue to operate a nationally licensed insurance agency and fully digital third party administrator platform under its current brand.
Harrigan is a 41-year veteran of the insurance and reinsurance business. He was formerly president and CEO of United Insurance Companies, which is now HealthMarkets. In addition to continuing operations of ZON Re’s digital TPA, he oversees Group Benefit Options LLC and Insur IQ, a personal lines insurance transaction processing technology.
Farrelly entered the insurance business in 1979 and has held senior management and chief underwriting positions with Duncason and Holt, Aon Benfield and ZON Re – USA.
The Nexus Group underwrites 15 specialty products on behalf of 23 underwriting partners within the financial lines, trade credit, accident & health, surety, travel, property, latent defect, marine and cyber.
Topics Mergers & Acquisitions USA Reinsurance Insurance Wholesale London
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